Grand Theft Auto V's staggering haul for Take-Two
Players in "Grand Theft Auto V" aim to rob their way to wealth. But if you want to talk serious money, then look at how much the game's distributor, Take-Two Interactive, is set to haul in from the game.
Take-Two already sold an incredible 29 million units of the game in the first six weeks of sales, according to the company—already surpassing the lifetime sales of "Grand Theft Auto IV." Macquarie analyst Ben Schachter now calls 40 million to 50 million units of lifetime sales an "achievable goal."
In total, Schachter expects the game to bring in $2 billion to $2.5 billion worth of revenue for Take-Two, he told CNBC.com in an email. At the 20 to 30 percent margin he estimates, that translates into a staggering $400 million to $750 million in profit alone for the company.
"This is truly an unprecedented launch in video game history," Schachter wrote in a note Wednesday, and "we believe that there is still a lot more to come. We remind investors that these results are based on a release on just two platforms (PS3/Xbox 360). We still expect a PC version and next-gen releases."
The video game's potential results make Hollywood blockbusters sound quaint. The highest-grossing film of 2013, Walt Disney's "Iron Man 3," took in a bit over $400 million in the U.S., and $1.2 billion worldwide, according to Box Office Mojo. That means "GTA V" is likely to surpass the third "Iron Man" flick's domestic gross in profit alone.
Despite the strong "GTA V" numbers, which were released along with Take-Two's earnings after Tuesday's closing bell, Take-Two shares opened Wednesday slightly lower. Meanwhile, Schachter still sees a great deal of upside for the $18 stock, reiterating his "outperform" rating and $25 price target.